Blossom's Flowers purchases roses for sale for Valentine's Day.The roses are purchased for $10 a dozen and are sold for $20 a dozen.Any roses not sold on Valentine's Day can be sold for $5 per dozen.The owner will purchase 1 of 3 amounts of roses for Valentine's Day: 100,200,or 400 dozen roses.The opportunity loss for buying 400 dozen roses and selling 200 dozen roses at the full price is
A)- $2,000
B)$1,000
C)$500
D)$0

Question

Quizplus · Accepted Answer

The opportunity loss is calculated as the difference between the profit that could have been made by selling all 400 dozen roses at full price and the profit made by selling only 200 dozen at full price and the rest at the reduced price. Selling 200 dozen at full price ($20) and 200 dozen at reduced price ($5) results in a lower profit compared to selling all 400 dozen at full price. The difference in profit is $1,000, which is the opportunity loss.

Blossom's Flowers Purchases Roses for Sale for Valentine's Day